Contract Models & Effective Tendering Practices National Commissioning & Contracting Training Conference Martin Quinn Cat Consultancy

COMMISSIONING STRUCTURE Do you have a structure? What does it look like? How does it all fit together? Where are the links?

Why is procurement important? With budget overspends on external spending A significant growth in partnerships with private and voluntary sector suppliers it has never been more important to get procurement right. Pressure to improve performance on procurement is mounting because: procurement can play a critical role in the delivery of strategic objectives, including the improvement of services. savings realised through more efficient procurement can be channelled into priority services. authorities are accountable for achieving Best Value and are open to legal challenge under the EC public procurement directives and the UK procurement regulations. inadequate planning and contract failures can result in financial loss, poor outcomes for CYP and damage to the authority’s reputation. poor practices in design and procurement result in time and cost overruns and poor quality. unnecessary ‘red tape’ and excessive timescales are costly for authorities and suppliers alike.

New Contract Planning 1)Demand Analysis What do you want from the contract? What are you trying to achieve? What procurement options are open to you? 2)Supplier/Provider Analysis Are any of your current providers able to develop their services to meet the requirements of this new contract? Are providers interested in taking on this project? 3)Market Analysis Are there sufficient capable providers in the market to meet your needs? What are the unconsidered consequences of letting this contract on existing local and regional arrangements?

Care Act LA must make sure that people receive preventative services Have access to information and advice have a range of providers offering a choice of high quality, appropriate services. LAs must Ensure personalisation PBS etc Understand the market Identify Service Users (including Carers) Consider an individual’s wellbeing Step in when a Provider fails if necessary

Contract Types What type of contract? Spot Purchasing Cost & Volume Block Contract Framework Contract Payment by Results Contract

Contract Design Objective Type of Service Number of providers Length of contract Options Appraisal Stakeholders Project Team Supplier Involvement EU Procurement Directives Public Contracts Regulations 2015

Light Touch Regime Replaces Part B High threshold 750,000 euros (the current sterling equivalent is £625,050). Below the LTR threshold, no requirement to advertised in the OJEU. OJEU Advertising: Publication of a contract notice (CN) or prior information notice (PIN). Contract award notice (CAN) following each individual procurement, or on a quarterly basis. Compliance with Treaty principles of transparency and equal treatment. Follow OJEU advert (CN or PIN) Time limits must be reasonable and proportionate on a case by case basis. Flexibility over procurement procedures Reserved contracts for certain services in the light-touch regime (Mutuals etc) Clinical Commissioning Contracts from April 2016

16-18 Years Years 5-10 Years 0-4 Years Offer to Tier 1 Providers first If there is no match, offer to Tier 2 GDCHIGDCHI BEDAJBEDAJ AFGJBAFGJB ABCDEABCDE AFBEJAFBEJ FGCHIFGCHI CDEIHCDEIH FGHIJFGHIJ 2 TIERTIER Spot PurchaseIf there is still no match to be found Age? Select Appropriate Age Band Placement Request 1 KEY The letters represent different providers. The columns are age specific lists ranked according to the price / quality split CONTRACT MODEL

Tendering Open Restricted Negotiated Competitive Dialogue Dynamic Purchasing Systems

INVITATION TO TENDER (ITT) Tender Document Instructions for Tendering Tender Statement List of Contract Documents Financial References Statement of Insurance Tender Evaluation Tenderers Proposals / Method Statements Tender Pricing Summary Milestones Mid Tender Interviews Not evaluated Information shared

Tendering Evaluation Evaluation criteria should be published in contract notices and the invitation to tender. They must not be changed during the procurement process. A tender evaluation model including objective criteria for the assessment of cost and quality should be prepared in advance of procurement. Really look at what you want from Tenderers Keep it simple Be clear Is there accreditation you can use Try to be objective rather than subjective Submit once on multiply lots or submit same thing multiple times?

Tendering Evaluation Quality Tender Document Interviews Presentations Site Visits Service Users Social Value Price

SCORING OF TENDERS Weighted Scores Tender - 50% Site Visit - 25% Presentation - 10% Interviews - 15% Quality Assessment Highest weighted score = 100% Price Assessment Lowest weighted score = 100% Social Value? Increasingly weighted score either part of Quality or as separate Section Overall Assessment Total of Quality & Price

PRE-CONTRACT AWARD Risk Analysis Heads of Service Operational managers Notification to unsuccessful tenders Alcatel Case (EU case law) Standstill period Breach of contract

Martin Quinn Commissioning & Training Consultant